Consensus Oscillator with ADX (LeafAlgo)

This indicator creates a normalized consensus from a set of other indicators -- Chande Momentum Oscillator (CMO), Detrended Price Oscillator (DPO), Momentum (MOM), Rate of Change (RoC), Relative Strength Index (RSI), the True Strength Index (TSI) Value line, Volume Oscillator, and a normalized Z-score.

The consensus is created by giving ranged values to each individual indicator. These individual values are added together, then put through a normalization function to create a 0-100 range. The scoring for each indicator is as follows:

CMO:
- If chandeMO <= -50, then the score is valued at -2
- If chandeMO > -50 and chandeMO <= -25, then the score is valued at -1
- If chandeMO > -25 and chandeMO < 25, then the score is valued at 0
- If chandeMO >= 25 and chandeMO < 50, then the score is valued at 1
- If chandeMO >= 50, then the score is valued at 2

DPO:
- If dpo <= -0.005, then the score is valued at -2
- If dpo > -0.005 and dpo <= -0.0025, then the score is valued at -1
- If dpo > -0.0025 and dpo < 0.0025, then the score is valued at 0
- If dpo >= 0.0025 and dpo < 0.005, then the score is valued at 1
- If dpo >= 0.005, then the score is valued at 2

MOM:
- If mom <= -0.05, then the score is valued at -2
- If mom > -0.05 and mom <= -0.025, then the score is valued at -1
- If mom > -0.025 and mom < 0.025, then the score is valued at 0
- If mom >= 0.025 and mom < 0.05, then the score is valued at 1
- If mom >= 0.05, then the score is valued at 2

ROC:
- If roc <= -20, then the score is valued at -2
- If roc > -20 and roc <= -10, then the score is valued at -1
- If roc > -10 and roc < 10, then the score is valued at 0
- If roc >= 10 and roc < 20, then the score is valued at 1
- If roc >= 20, then the score is valued at 2

RSI:
- If rsi <= 20, then the score is valued at -2
- If rsi > 20 and rsi <= 40, then the score is valued at -1
- If rsi > 40 and rsi < 60, then the score is valued at 0
- If rsi >= 60 and rsi < 80, then the score is valued at 1
- If rsi >= 80, then the score is valued at 2

TSI Value:
- If tsi <= -20, then the score is valued at -2
- If tsi > -20 and tsi <= -10, then the score is valued at -1
- If tsi > -10 and tsi < 10, then the score is valued at 0
- If tsi >= 10 and tsi < 20, then the score is valued at 1
- If tsi >= 20, then the score is valued at 2

Volume Oscillator:
- If vo <= -20, then the score is valued at -2
- If vo > -20 and vo <= -10, then the score is valued at -1
- If vo > -10 and vo < 10, then the score is valued at 0
- If vo >= 10 and vo < 20, then the score is valued at 1
- If vo >= 20, then the score is valued at 2

Normalized (-1 to +1) Z-Score:
- If z_n <= -0.5, then the score is valued at -2
- If z_n > -0.5 and z_n <= -0.25, then the score is valued at -1
- If z_n > -0.25 and z_n < 0.25, then the score is valued at 0
- If z_n >= 0.25 and z_n < 0.5, then the score is valued at 1
- If z_n >= 0.5, then the score is valued at 2

The consensus line is colored depending on the closing value of the line. The color is shown as lime if above 70, a darker green between 55 and 70, yellow between 45 and 55, orange between 30 and 45, and red below 30.

Additionally, there is a normalized ADX line added into the indicator to give further confirmation to trend strength. The normalized ADX line is shown as green if above 40, yellow between 40 and 20, and red below 20.

Horizontal lines have been added at 20/30 and 50/60 as semi-important levels to watch.

リリースノート:

In this updated version, I added an option to use dynamic thresholds for scoring the consensus. You can enable the "Use Dynamic Thresholds" input parameter to activate this feature. Two additional input parameters, "High Threshold" and "Low Threshold," allow you to customize the threshold levels. The consensus oscillator will be colored based on the dynamic thresholds if enabled, or it will use the predefined color scheme if dynamic thresholds are disabled.

Using dynamic thresholds can provide more flexibility in adapting the scoring to different market conditions. By adjusting the high and low threshold values, you can control the sensitivity and accuracy of the consensus oscillator. Higher thresholds may result in fewer signals but with higher confidence, while lower thresholds can generate more signals with potentially lower accuracy. Experimenting with different threshold levels can help fine-tune the indicator to your preferred trading style and market conditions.

However, it's important to note that dynamic thresholds introduce subjectivity into the scoring process, as the threshold values are user-defined. It requires careful observation and testing to determine the optimal threshold levels for your trading strategy. Additionally, relying solely on dynamic thresholds may not always guarantee improved accuracy, as market conditions can change, and historical performance may not always repeat in the future.